NewTimeSpace | Under Pressures of Profitability and Turnover, ALSCO Pooling (02649.HK) Plunges Over 60% Below IPO Price in First Month

With a Hong Kong public subscription exceeding 5,000 times, the stock fell over 60% below its IPO price in less than a month.

NewTimeSpace understands that ALSCO Pooling (02649.HK), known as the "first stock of automotive reusable packaging," encountered a "cold snap" upon its debut on March 9, 2026. It became a "broken IPO" on its first day, with a sharp decline of 43.64%.

The stock has remained weak ever since. As of March 24, 2026, ALSCO Pooling closed at HK$4.08, representing a cumulative drop of 62.91% from its IPO price.

No Cornerstone Investors; Stock Price Drops Over 60%

Public records show that ALSCO Pooling, founded in 2016, is a Chinese provider of reusable packaging services, primarily serving automotive component manufacturers and Original Equipment Manufacturers (OEMs) within the auto industry.

The company operates through a shared model, managing reusable packaging such as pallets, crates, and containers for its customers. It handles storage, distribution, returns, cleaning, and maintenance on behalf of its clients.

ALSCO Pooling plans to use the IPO proceeds to refine and upgrade its digital systems and platforms, advance its overseas expansion strategy, broaden its national service network, and acquire companies to expand its service scenarios into other downstream industries. A portion of the funds will also be used for general corporate purposes and working capital.

It is understood that ALSCO Pooling set its IPO price at HK$11, offering 20.336 million shares globally. The Hong Kong public offering accounted for only 10% of the total, corresponding to a fund-raising amount of just HK$28.48 million. Despite the small scale, the Hong Kong public offering was oversubscribed by 5,297.23 times. In contrast, the international placement was oversubscribed by only 4.20 times. Notably, the IPO did not involve any cornerstone investors.

Industry insiders noted that ALSCO Pooling’s market capitalization at listing was only HK$1 billion. The lack of cornerstone investors, the vast gap between public and international subscription levels, and the absence of a "green shoe" (over-allotment) mechanism indicated a lack of recognition from institutional investors.

Lacking both a green shoe mechanism and cornerstone investors, ALSCO Pooling fell by over 40% on its debut. By the close of trading on March 24, 2026, the company was quoted at HK$4.08, down 62.91% from the HK$11 IPO price, with its market value shrinking to HK$369 million.

Net Profit Continues to Decline; High Accounts Receivable Persist

As a reusable packaging service provider, ALSCO Pooling is the second-largest provider of such services in China and the largest provider in the Chinese automotive shared operation service market by 2024 revenue, according to Frost & Sullivan.

As of August 31, 2025, supported by 81 Container Management Centers (CMCs), ALSCO Pooling managed an asset pool of over 1.5 million reusable containers across a logistics service network spanning more than 100 cities. This includes major cities like Shanghai, Wuxi, Guangzhou, Wuhan, and Chongqing, as well as bases in Indonesia and South Korea.

NewTimeSpace has learned that ALSCO Pooling’s revenue is derived from four segments. Shared operation services (pay-per-use packaging rental) account for 75.5% as the core business. Container sales (direct sales to SMEs) account for 12.5%. Other value-added services (e.g., warehousing, logistics) account for 8.5%, while leasing services (fixed-term rentals) account for 3.5%.

Regarding performance, for 2022, 2023, 2024, and the first eight months of 2025, the company’s revenue was RMB 648 million, RMB 794 million, RMB 838 million, and RMB 533 million, respectively. Net profit attributable to the parent company was RMB 23.70 million, RMB 50.82 million, RMB 40.11 million, and RMB 22.03 million, respectively.

While revenue has grown steadily, net profit has fluctuated. In 2024, the company’s net profit declined by 21.1% year-on-year. For the first eight months of 2025, the net profit dropped further to RMB 22.03 million, a 7.8% decrease year-on-year.

Furthermore, ALSCO Pooling’s accounts receivable and notes receivable have remained persistently high, leading to low capital turnover efficiency. By the first eight months of 2025, accounts receivable accounted for over 60% of the total revenue for that period.

Data shows that from 2022 to the first eight months of 2025, the company's accounts receivable and notes receivable were RMB 311 million, RMB 361 million, RMB 382 million, and RMB 325 million, showing an overall upward trend. Corresponding turnover days were 168, 160, 168, and 169 days, consistently staying above 160 days.

Highly Fragmented Industry at a "Double Tailwind"

Although ALSCO Pooling has dropped over 60% in less than a month, the reusable packaging service industry it operates in is currently positioned at the intersection of the "Green Economy" and "Supply Chain Restructuring."

According to Frost & Sullivan, the Chinese reusable packaging service market was valued at approximately RMB 56 billion in 2024 and is expected to exceed RMB 200 billion by 2030, with a compound annual growth rate (CAGR) potentially exceeding 25% over the next 5 to 10 years.

NewTimeSpace understands that under "Dual Carbon" goals, the circular economy has become a national strategy. Reusable packaging, as a key method for reducing supply chain carbon emissions, is shifting from "optional" to "mandatory."

The rise of new energy vehicles (NEVs) and high-end manufacturing has placed new demands on supply chain packaging, including standardization, safety, traceability, and lifecycle carbon footprint management.

Additionally, the shared operation model helps customers reduce costs related to packaging procurement, inventory, and transportation, making it more attractive to enterprises during economic downturns.

According to Frost & Sullivan, ALSCO Pooling is the second-largest reusable packaging service provider in China by 2024 revenue. In specific sub-sectors, ALSCO Pooling accounted for 6.4%, 2.4%, and 1.0% of the overall Chinese logistics packaging solution market for reusable packaging services, shared operation services, and automotive shared operation services, respectively.

Furthermore, while ALSCO Pooling is the second-largest provider, its market share is only 1.5%. The top five participants combined hold a share of only 4.7%, indicating a highly fragmented industry. A market structure with over 3,500 participants means that risks of price competition and service homogenization remain ever-present.

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